Can 658 Account be closed with 502 account?
After 648 or 658 account is included in the income statement, it will be transferred to the Period profit or loss account and closed. 590 or 591 account will remain in the balance sheet. It is not possible to close 590 or 591 account with 502 account.
If there is a period profit at the end of the year and after the 2024 corporate tax return is submitted, this can be added to the capital.
As a result of the inflation adjustment differences at the end of 2023, the amount in the 580 account can be offset with the inflation adjustment differences in the 502 account or other equity accounts.
Tax Procedure Law Communiqué No. 555
Previous years’ profit or loss resulting from the correction of the balance sheet for the end of the 2023 accounting period
ARTICLE 41- (1) Previous years’ profit or loss resulting from the correction of the balance sheet for the end of the 2023 accounting period will continue to be monitored in the sub-account of the Previous Years’ Profits/Losses Account where it is recorded and will be subject to correction in the following periods according to paragraph (A) of Article 298 of Law No. 213 and the principles set forth in this Communiqué.
(2) In accordance with the provision in paragraph (5) of paragraph (A) of Article 298 of Law No. 213, inflation differences pertaining to equity items may be offset against the said previous year losses resulting from the correction or added to the capital by corporate taxpayers and these transactions will not be considered as profit distribution.
The penalty for non-compliance with the uniform chart of accounts is 65,000 TL (Tax Procedure Law 353/6.Art.)
Source: Istanbul Chamber of Certified Public Accountants
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